When do Interest and Late Payment Charges begin to accrue for a Fat Shack franchise?

Question

Accepted Answer

| Type of Fee               | Amount                                                                                                         | Due Date                                                                                                  | Remarks                                                                                                                                                                                                   |
|---------------------------------------|----------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Relocation Fee1 | 25% of the then-current Initial Franchise Fee | Before you move your FAT SHACK Restaurant | Payable if you move your FAT SHACK Restaurant from one location to another. |
| Additional Training1,4 | Tuition, if applicable, and costs associated with attending additional training programs | As incurred | We may require additional training periodically. Tuition, if any, is payable to us. All other costs are payable to third party suppliers. |
| Interest and Late Payment Charges1 | Lesser of 1½% per month or highest rate of interest allowed by law, plus a \$50 late filing charge | Upon demand | Begins to accrue the day after payments are due for the Royalty Fees and Marketing and Promotion Fees. |

Source: Item 6 — Other Fees (FDD pages 15–18)

When do Interest and Late Payment Charges begin to accrue for a Fat Shack franchise?

Answer from 2025 FDD Document

What This Means (2025 FDD)

Type of Fee	Amount	Due Date	Remarks
Relocation Fee1	25% of the then-current Initial Franchise Fee	Before you move your FAT SHACK Restaurant	Payable if you move your FAT SHACK Restaurant from one location to another.
Additional Training1,4	Tuition, if applicable, and costs associated with attending additional training programs	As incurred	We may require additional training periodically. Tuition, if any, is payable to us. All other costs are payable to third party suppliers.
Interest and Late Payment Charges1	Lesser of 1½% per month or highest rate of interest allowed by law, plus a $50 late filing charge	Upon demand	Begins to accrue the day after payments are due for the Royalty Fees and Marketing and Promotion Fees.